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My husbands last two paychecks have greatly reduced Federal Med/EE tax. By about $125. I’m very concerned about this. Does anyone know why he would all of the sudden be paying less?

 
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3 Replies
KittyM2
Expert Alumni

My husbands last two paychecks have greatly reduced Federal Med/EE tax. By about $125. I’m very concerned about this. Does anyone know why he would all of the sudden be paying less?

It could be because Social Security withholding phases out at $132,900 ($137,700 for 2020). Your wages with no limit are taxed at 1.45% for Medicare. Your employer matches those amounts and sends the total to the government.

 

I suggest you contact your employer for further information about your payroll deductions. Pay stubs vary widely in the terms they use, so it would be wise to confirm the actual reason.

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My husbands last two paychecks have greatly reduced Federal Med/EE tax. By about $125. I’m very concerned about this. Does anyone know why he would all of the sudden be paying less?

You might have to have him check with his employer.  Perhaps they over-withheld earlier in the year and are  just adjusting for the proper amounts.

 

(Edited out)

 

.....and... for just the SS portion if his income has exceeded 132,900 for 2019, then SS stops (but Medicare doesn't)

 

A discussion with his employer (Payroll or HR ) should clear up what's up.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

My husbands last two paychecks have greatly reduced Federal Med/EE tax. By about $125. I’m very concerned about this. Does anyone know why he would all of the sudden be paying less?

I slipped up....and edited my comment above.  401k contributions are not removed from SS wages, only from taxable income.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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